which is best to do long term investment/intraday?

Discussion in 'Trading' started by johnmmf, Jan 25, 2018.

  1. johnmmf


    Suggest some opinions regarding it!
  2. tomorton


    Neither is any good and is too high risk for most people.

    I would advise long-term TRADING off daily charts. Be prepared to hold overnight obviously but also across several weekends. Therefore target selection is important.
    johnmmf likes this.
  3. johnmmf


    if i fall in loss in long-term trading then there is any kind of steps to overcome with that loss? or what kind of steps to be more preferable which i had to use at the time of loss.
  4. tomorton


    Some trades will be losers unless you chance on a 100% win rate strategy, so don't obsess over these. Keep your account alive by making sure each loser is only a small % of the capital in the account. Always set a stop-loss so the loss per trade is controlled and predictable.

    Demo trade first. Use a simple strategy - don' look at charts in more than 2 time-frames, 1 off-chart indicator (if any), no more than 2 MA's. As you learn, make small incremental changes but focus on doing this with the winners.

    Select targets that have narrow spreads and few overnight / over-weekend big gaps. Reject stock tips and anything you hear on TV about company performance and market bullishness / bearishness. If buying stocks, only buy if their index is also bullish.

    Generally its risky to buy when price is a a new high or to short when price is at a new low.
    johnmmf likes this.
  5. johnmmf


    Thanks a lot! if i set a Stop-loss while doing trading as a security position,so there is any strategies i have to keep in my mind or i have to set up a SL in a small % only?
  6. tomorton


    Most people set their stop-loss so that if triggered the capital loss will be small %age from your account. Many argue for 2%, some go down to 0.5%, on a trade following a strong trend I am happy to go to 5%, very few go higher than 10% per trade. Remember that even if each trade has a maximum risk of 2% loss if the SL is triggered if you are holding say 10 S&P500 stocks, they will probably all move up or down in step, so your risk in the event of a deep market downturn triggering all your stops is 20%.

    Some people know their strategies so well they will use a larger risk % for a safer trade.

    Always set a SL, but bear in mind that a gap can jump across your SL price and your SL order will be executed beyond it. This isn't an argument for a very high % risk.

    The best place for the stop is where price on reaching it proves that your reason for opening the trade is now more probably wrong, the most important element of a strategy being the price you pay to get out, not the price you pay to get in.
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  7. johnmmf


    yes!in simple words you explain me a lot..Thanks a lot,initially i got a lot of helping learning strategies.
    Last edited: Jan 25, 2018
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  8. davenz


    For stocks - long-term investing.
    For forex - short-term. (I don't know about you, but I prefer to get my profits and get out before the classic FX choppiness kicks in!).

    johnmmf likes this.
  9. %%
    Both; i dont know about 4ex. But to do any kind of trading +investing i have to enter/exit intraday, exact close is to busy for me LOL.:D:D
  10. Jack1960


    Do both
    #10     Jan 25, 2018
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